IDEAS home Printed from https://ideas.repec.org/p/wiw/wiwrsa/ersa13p320.html
   My bibliography  Save this paper

Development, growth and decline in Europe: New patterns of economic convergence and divergence?

Author

Listed:
  • Andreas P. Cornett
  • Nils Karl Soerensen

Abstract

The influence of general economic and fiscal policy is in recent years more significant than ever. Tight budgets sets limits on public spending in general and on regional development in particular, both with regard to programs specifically targeted on regional issue, but often also indirect due to changes in the geographical distribution of public spending (i.e. local purchasing of goods and services) or the location of institutions etc. Furthermore the focus on (global) competitiveness, innovation 'smart growth' in the Lisbon and Euro 2020 strategy seems to have a build in effect toward economic activities usually located in center or metropolitan areas. Based on an analysis of the dominant policy measures used in EU structural and R&D policy the aim of the current paper is to assess, to what extent they have supported regional convergence, not only between but also within countries. The conceptual point of departure is new economic growth theory and the measures derived from these concepts. An attempt is made to analyze regional difference in the relevant factor endowments and to measure the impacts on regional convergence in a European (country wise) and urban-rural perspective. The first part of the paper discusses the overall development with regard to Structural funds and the distribution of grants with focus on the developments and perspectives until 2020. The second part considers the impact on the process of convergence of the current decline in the overall economic trends in Europe in a regional context. In addition, in influence of innovation on the development in a European perspective in analyzed along with increasing concentration of the population in urban areas. Finally, the paper addresses the perspectives of the pursued policy in different regions.

Suggested Citation

  • Andreas P. Cornett & Nils Karl Soerensen, 2013. "Development, growth and decline in Europe: New patterns of economic convergence and divergence?," ERSA conference papers ersa13p320, European Regional Science Association.
  • Handle: RePEc:wiw:wiwrsa:ersa13p320
    as

    Download full text from publisher

    File URL: https://www-sre.wu.ac.at/ersa/ersaconfs/ersa13/ERSA2013_paper_00320.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Zoltan J. Acs & Attila Varga, 2008. "Geography, Endogenous Growth, and Innovation," Chapters, in: Entrepreneurship, Growth and Public Policy, chapter 12, pages 152-168, Edward Elgar Publishing.
    2. Maria Abreu & Henri L. F. de Groot & Raymond J. G. M. Florax, 2005. "A Meta‐Analysis of β‐Convergence: the Legendary 2%," Journal of Economic Surveys, Wiley Blackwell, vol. 19(3), pages 389-420, July.
    3. Cooke, Philip & Gomez Uranga, Mikel & Etxebarria, Goio, 1997. "Regional innovation systems: Institutional and organisational dimensions," Research Policy, Elsevier, vol. 26(4-5), pages 475-491, December.
    4. Andreas P. Cornett & Frank Othengrafen, 2011. "Spatial policy and planning in Northern Europe: an assessment of recent trends in policy and economic development," ERSA conference papers ersa10p631, European Regional Science Association.
    5. Willem Molle & Sjaak Boeckhout, 1995. "Economic Disparity Under Conditions Of Integration — A Long Term View Of The European Case," Papers in Regional Science, Wiley Blackwell, vol. 74(2), pages 105-123, April.
    6. Andreas P. Cornett & Nils Karl Soerensen, 2012. "Determinants of Convergence and Disparities in Europe: Innovation, Entrepreneurship and the Processes of Clustering," ERSA conference papers ersa12p631, European Regional Science Association.
    7. Cornett, Andreas P. & Sørensen, Nils Karl, 2008. "International vs. Intra-national Convergence in Europe – an Assessment of Causes and Evidence," INVESTIGACIONES REGIONALES - Journal of REGIONAL RESEARCH, Asociación Española de Ciencia Regional, issue 13, pages 35-56.
    8. Tomás Mancha-Navarro & Rubén Garrido-Yserte, 2008. "Regional policy in the European Union: The cohesion-competitiveness dilemma," Regional Science Policy & Practice, Wiley Blackwell, vol. 1(1), pages 47-66, November.
    9. Paul M. Romer, 1994. "The Origins of Endogenous Growth," Journal of Economic Perspectives, American Economic Association, vol. 8(1), pages 3-22, Winter.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Andreas P. Cornett & Nils Karl Soerensen, 2012. "Determinants of Convergence and Disparities in Europe: Innovation, Entrepreneurship and the Processes of Clustering," ERSA conference papers ersa12p631, European Regional Science Association.
    2. Andreas P. Cornett & Nils Karl Sørensen, 2016. "Innovation, income and regional development: An assessment of the importance of differences in regional potentials," ERSA conference papers ersa16p97, European Regional Science Association.
    3. Quatraro, Francesco, 2008. "Regional Knowledge Base and Productivity Growth: The Evidence of Italian Manufacturing," Department of Economics and Statistics Cognetti de Martiis LEI & BRICK - Laboratory of Economics of Innovation "Franco Momigliano", Bureau of Research in Innovation, Complexity and Knowledge, Collegio 200810, University of Turin.
    4. Andreas P. Cornett, 2014. "A new regional balance: Challenges and opportunities for intermediate city regions in Europe," ERSA conference papers ersa14p155, European Regional Science Association.
    5. Michael Fritsch & Viktor Slavtchev, 2007. "What determines the efficiency of regional innovation systems?," Jena Economics Research Papers 2007-006, Friedrich-Schiller-University Jena.
    6. Andrés Rodríguez-Pose & Riccardo Crescenzi, 2008. "Mountains in a flat world: why proximity still matters for the location of economic activity," Cambridge Journal of Regions, Economy and Society, Cambridge Political Economy Society, vol. 1(3), pages 371-388.
    7. Michael Fritsch, 2003. "Does R&D-Cooperation Behavior Differ between Regions?," Industry and Innovation, Taylor & Francis Journals, vol. 10(1), pages 25-39.
    8. Beugelsdijk, S. & Cornet, M., 2001. "How far do They Reach? The Localization of Industrial and Academic Knowledge Spillovers in the Netherlands," Other publications TiSEM 303b1186-e227-43ce-a118-0, Tilburg University, School of Economics and Management.
    9. Karlsson, Charlie & Johansson, Börje, 2006. "Regional Development and Knowledge," Working Paper Series in Economics and Institutions of Innovation 76, Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies.
    10. Karl, Helmut & Matus Velasco, Ximena Fernanda, 2004. "Lessons for regional policy from the new economic geography and the endogenous growth theory," Studies in Spatial Development: Chapters, in: Employment and regional development policy: Market efficiency versus policy intervention, pages 71-89, ARL – Akademie für Raumentwicklung in der Leibniz-Gemeinschaft.
    11. Christoph Grimpe & Roberto Patuelli, 2011. "Regional knowledge production in nanomaterials: a spatial filtering approach," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 46(3), pages 519-541, June.
    12. Cornett, Andreas P. & Sørensen, Nils Karl, 2008. "International vs. Intra-national Convergence in Europe – an Assessment of Causes and Evidence," INVESTIGACIONES REGIONALES - Journal of REGIONAL RESEARCH, Asociación Española de Ciencia Regional, issue 13, pages 35-56.
    13. Andrés Rodríguez-Pose & Marco Di Cataldo, 2015. "Quality of government and innovative performance in the regions of Europe," Journal of Economic Geography, Oxford University Press, vol. 15(4), pages 673-706.
    14. Laranja, Manuel & Uyarra, Elvira & Flanagan, Kieron, 2008. "Policies for science, technology and innovation: Translating rationales into regional policies in a multi-level setting," Research Policy, Elsevier, vol. 37(5), pages 823-835, June.
    15. Andreas P. Cornett & Nils Karl Soerensen, 2011. "The Emergence of New Regional Convergence Clubs in a Nordic and Baltic Perspective," ERSA conference papers ersa10p628, European Regional Science Association.
    16. Dohse, Dirk, 2000. "Technology policy and the regions -- the case of the BioRegio contest," Research Policy, Elsevier, vol. 29(9), pages 1111-1133, December.
    17. Fernandes, Cristina & Ferreira, João & Raposo, Mario, 2013. "Drivers to firm innovation and their effects on performance: An international comparison," MPRA Paper 46776, University Library of Munich, Germany.
    18. Andreas P. Cornett & Frank Othengrafen, 2011. "Spatial policy and planning in Northern Europe: an assessment of recent trends in policy and economic development," ERSA conference papers ersa10p631, European Regional Science Association.
    19. Sjoerd Beugelsdijk & Maarten Cornet, 2002. "'A Far Friend is Worth More than a Good Neighbour': Proximity and Innovation in a Small Country," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 6(2), pages 169-188, May.
    20. Vicente German-Soto & Luis Gutiérrez Flores, 2010. "Time Series Tests of Structural Change among Innovation and Trade Liberalization in Mexico," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 1(3), pages 219-237, September.

    More about this item

    Keywords

    Recession; regional economic growth; convergence & divergence; EU structural policy; innovation;
    All these keywords.

    JEL classification:

    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • R58 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Regional Development Planning and Policy

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wiw:wiwrsa:ersa13p320. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Gunther Maier (email available below). General contact details of provider: http://www.ersa.org .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.